International buyers shunning European bonds as LTRO funds dry up
- Percentage of international Spanish bondholders at 33% at end of Jan from 44% in 2010
- Bankers say int’l community used LTROs to further lighten up
- Deutsche Bank analysts estimate that Spanish banks have already used up LTRO funds
- DB says Italian banks still have LTRO funds to buy debt, keeping BPT yields from climbing for now
“The day of reckoning may be approaching soon for the eurozone,” says one government bond trader at a US bank.